Bandhan Bank shares hit lower circuit on FY27 RoA guidance cut

The lender slashed its return on assets outlook to 1.2-1.4% from 1.6-1.8%, citing external headwinds. The move caps a week of heavy selling across Indian banking stocks.

By Handelsavisen Newsroom · Automated 2026-07-22 04:16 UTC · 1 min read

Bandhan Bank shares plunged 10% to hit the lower circuit on the National Stock Exchange, trading at ₹187.95, after the lender significantly reduced its profitability outlook for the coming fiscal year.

The Kolkata-based private bank cut its FY27 exit return on assets (RoA) guidance to a range of 1.2-1.4%, down from the previously stated 1.6-1.8%.

Management attributed the downgrade to external factors impacting the business environment, a move that immediately spooked investors and triggered a halt in trading due to the circuit breaker limit.

The sharp repricing reflects growing investor anxiety over margin compression in the Indian banking sector.

While the bank did not specify the exact nature of the external headwinds, the reduction in RoA guidance signals potential pressure on net interest margins or asset quality concerns that could weigh on earnings for the foreseeable future.

The stock’s move to the lower circuit indicates a severe lack of buying interest at current levels, as traders digest the implications of the lowered profitability target.